Financial statement 2012/2013

2013-27-08

TGW, materials handling solution provider from Wels, Austria, consequently follow their path to an international corporation. By 2015, the company strives to have representations on all relevant and international core markets. In the past business year 2012/2013 the company focused on strengthening their market position and establishing reliable structures in their young entities. Orders worth 455 million Euros (609 million US Dollars) let them beat their record in the closed business year (by 30th June). This is a 25 per cent increase compared to the previous year. TGW started with an order backlog of 335 million Euros (447 million US Dollars) into the new business year. The revenue rose to 388.9 million Euros (519 million US Dollars), a plus of 7.35 per cent. The EBIT is 16.2 million Euros (21.6 million US Dollars). TGW employs 1,680 people worldwide, which is the highest level to date.

In the business year 2012/2013, the main focus was on strengthening the market position and the structures of the still young entities. TGW president Georg Kirchmayr: “It is our goal to stay on our growth course. On the one hand, we will achieve this by an increase of our market share in already established markets, on the other hand by further internationalizing our business. TGW has a solid basis for this.” In China for example, the market is being developed by a qualified team on the spot. In 2014, a TGW installation for the Chinese e-commerce empire CNSS will go live. At the beginning of this year, TGW acquired the other 50 per cent of the joint venture in Brazil. The entity in São Paulo is now completely in TGW’s hands and secures access to the entire South American continent. A large-scale project in the Russian fashion industry in addition to a couple of other projects led the way to first successes in the Russian market.

The record order intakes of 455 million Euros (609 million US Dollars) can also be traced back to the biggest order in TGW’s history: In Schafisheim, Switzerland, TGW will be implementing a new distribution centre for the Coop Group, which will be finished in 2016.

Major investments in new markets, entities and technologies

The consolidated revenue of the TGW Group increased by 7.35 per cent to 388.9 million Euros (519 million US Dollars), the EBIT is slightly decreasing with 16.2 million Euros (21.6 million US Dollars). The reasons for this are based on the major investments into the international TGW subsidiaries as well as in research and development. Georg Kirchmayr: “The development of future markets such as China and Brazil and the expansion of still young entities are crucial steps for our growth. Furthermore, we majorly invest in the development of new products and solutions in the areas of electro-mechanical equipment and software for our installations.” The youngest electro-mechanics product of the company based in Wels is the STINGRAY shuttle system which was able to conquer the market in the past year with already more than 1,000 sold shuttles. Further developments will enter the market in the new business year.

Still, TGW is searching for new employees to support the expansion course. “We hire additional employees to strengthen our team especially in the international project management but also in controls and software commissioning,” says Kirchmayr. More than 100 employees were added to the headcount during the last year, which led to further investments in new buildings. Currently, a new building is being constructed in the United Kingdom and the expansion of the existing site in Wels with an investment of 4.5 million Euros (6 million US Dollars) with additional 200 workplaces will be finished during the next weeks.

TGW’s customers include international brands such as Adidas, H&M, Gap, Esprit, Jack Wolfskin, Bentley or Kärcher.